HMRC has updated Accounting standards: the UK tax implications of new UK GAAP (see www.bit.ly/1Olr3Bg). It updated its FRS 102 (reporting requirements) overview paper on 30 October 2015 to take account of the following changes over the past year: amendments made to the disregard regulations and the change of accounting practice regulations in December 2014, in relation to elections and corporate rescues respectively; amendments to FRS 102 since August 2014, including new section 1A for small entities effective from January 2016; and additional commentary on non-interest bearing loans.
Two sets of guidance notes cover the key corporation tax considerations on transition to new UK generally accepted accounting principles (GAAP). Many UK companies will be required to adopt the rules in either FRS 101 (reduced disclosure) or FRS 102 for periods commencing on or after 1 January 2015.
HMRC has also published draft guidance for its corporate finance manual on the treatment of non-interest bearing loans and other loans entered into on non-market terms. This is an area where there can be significant difference in the accounting treatment for companies moving to new UK GAAP from old UK GAAP. See www.bit.ly/1RsAFYz.
Furthermore, HMRC has also updated Corporation tax: disregard regulations for derivative contracts, to take account of new section 1A of FRS 102 applying to small companies from January 2016. Changes to accounting standards in new UK GAAP require fair value accounting for derivative contracts from January 2015. However, companies may elect into regulations which allow them to disregard fair value movements and instead apply the detailed computational rules. There are strict time limits for making the election. See www.bit.ly/1Olt0h5.
HMRC has updated Accounting standards: the UK tax implications of new UK GAAP (see www.bit.ly/1Olr3Bg). It updated its FRS 102 (reporting requirements) overview paper on 30 October 2015 to take account of the following changes over the past year: amendments made to the disregard regulations and the change of accounting practice regulations in December 2014, in relation to elections and corporate rescues respectively; amendments to FRS 102 since August 2014, including new section 1A for small entities effective from January 2016; and additional commentary on non-interest bearing loans.
Two sets of guidance notes cover the key corporation tax considerations on transition to new UK generally accepted accounting principles (GAAP). Many UK companies will be required to adopt the rules in either FRS 101 (reduced disclosure) or FRS 102 for periods commencing on or after 1 January 2015.
HMRC has also published draft guidance for its corporate finance manual on the treatment of non-interest bearing loans and other loans entered into on non-market terms. This is an area where there can be significant difference in the accounting treatment for companies moving to new UK GAAP from old UK GAAP. See www.bit.ly/1RsAFYz.
Furthermore, HMRC has also updated Corporation tax: disregard regulations for derivative contracts, to take account of new section 1A of FRS 102 applying to small companies from January 2016. Changes to accounting standards in new UK GAAP require fair value accounting for derivative contracts from January 2015. However, companies may elect into regulations which allow them to disregard fair value movements and instead apply the detailed computational rules. There are strict time limits for making the election. See www.bit.ly/1Olt0h5.
